International Transfer Strategy of the Human Resource Management System among Japanese Firms Overseas

Abstract

This paper describes how performance of Japanese affiliates in China and Taiwan is affected by HRM resource inflows from the Japanese parent company. The regression results, based on samples of Japanese affiliates in China (n=229) and Taiwan (n=57), revealed that of the four critical HRM resources transferred from the Japanese parent firms, including resources for educational investment (EDUC), on-the-job problem solving (SOLV), incompany welfare (WELF) and long-term commitment incentives (COMM), transfer of SOLV had a significant and positive contribution to affiliate's financial performance. Moreover, the result of a path analysis indicated that remaining three HRM resources were working for underpinning the functions of problem solving resources and thus conferring economic benefits to the affiliates. In conclusions, mechanisms of gaining competitiveness through transferring HRM resources from the Japanese parent to overseas affiliates are discussed, focussing on the sequential transfer process of HRM resources from basic to instrumental.